Underpinned by a diversified economy, Egypt’s economic strength supports our B2 issuer credit rating, Moody’s said in a periodic review of Egypt’s credit rating, which does not involve a rating or outlook update. Egypt’s credit rating remains at B2 with a stable outlook. “Relatively weak but improving” governance indicators are balanced out by institutional and governance strength, along with Egypt’s “solid track record” of commitment to implementing reforms, Moody’s said.

On the flipside, Egypt’s public finances remain a weak spot, with a high government debt burden that is now in decline after rising temporarily due to the pandemic, the review says. While the likelihood of social upheaval is low, the review found that Egypt is still exposed to banking sector risks because of its large banking system and population. These risks, however, remain well mitigated by the sector's stable funding structure, large liquidity buffers and resilient loan performance. A September report by Moody’s had found Egypt’s credit indicators largely resilient to shocks.